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- IREN reported a 58% drop in Bitcoin mining revenue to $28 million.
- AI cloud revenue nearly tripled to $200 million, lifting total revenue to $228 million.
- IREN posted a $263 million net loss and pushed back a major deployment target.
IREN’s Bitcoin mining revenue fell 58% from the previous quarter to $28 million as the company shifted more data-center capacity toward artificial intelligence (AI).
AI cloud revenue nearly tripled to $200 million, lifting total revenue to $228 million. But IREN still posted a $263 million net loss and pushed back a major deployment target.
AI Supplies 88% of Revenue as Mining Winds Down
The results, released Nov. 5, cover the three months ended Sept. 30, IREN’s first quarter of fiscal 2027. Bitcoin mining revenue had been $67 million in the preceding quarter, while AI cloud revenue was $71 million.
AI now accounts for roughly 88% of revenue. Its latest quarterly total comprises $135 million from services and $65 million from leases, compared with no lease revenue in the June quarter.
IREN aims to complete its shift substantially from mining to AI by Dec. 31, although limited Bitcoin mining is expected to continue through 2027. It does not expect further material investment in mining hardware.
The company mined 402 BTC during the quarter, compared with 2,039 BTC a year earlier. It generally sells mined Bitcoin daily and holds none on its balance sheet at Sept. 30.
Expansion Brings Heavy Spending Alongside the Revenue Growth
The $263 million net loss narrowed from $684 million in the preceding quarter. Expenses included $148 million in depreciation and amortization, $106 million in stock-based compensation and $73 million in financing costs.
Meanwhile, cash payments for computer hardware reached $2.693 billion, alongside $2.131 billion for other property, plant and equipment. Those investments are separate from the expenses used to calculate the quarterly loss.
IREN also recorded a $21 million decline in the value of mining equipment held for sale and $2 million in asset impairments, primarily related to mining hardware.
Data-Center Changes Push Revenue Target Into 2027
IREN had expected to have capacity supporting more than $4 billion in annualized operational revenue by year-end. It now targets Jan. 31, 2027, with a possible extension through February.
Co-founder and co-CEO Daniel Roberts said:
“[…] a customer-requested design change and supplier timing moved it from year-end; it may extend to the end of February.”
Horizon 1 has entered service for Microsoft, while Horizon 2–4 remain in late-stage construction. Revenue still needs to ramp up after facilities are delivered, tested and accepted by customers.
The $4 billion figure describes an annualized operating revenue rate, rather than revenue already earned. Its $20.3 billion revenue backlog also depends on delivering contracted capacity and services.
Wider Expansion Still Requires $6 Billion in Funding
IREN estimates $15 billion in remaining planned capital spending for fiscal 2027, which ends June 30, 2027. It expects $9 billion to come from cash, committed financing for graphics processors and customer prepayments, with another $6 billion still targeted from additional funding sources.
The company says the smaller program supporting its near-term $4 billion annualized revenue target is fully funded. Its funding pool includes loans not yet drawn and contracted customer prepayments not yet received, with some money released only after financing conditions are met.
